economy. Our framework incorporates the interactions between the network of banks (exhibiting contagion mechanisms among them …) and the network of firms (transmitting shocks to each other along the supply chain) which systems are linked together via …

We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining … contagion and aggregate losses in a stylised financial system. Systemic instability is explored in a financial network …

; Network models ; Systemic risk …We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining … contagion and aggregate losses in a financial system. Systemic instability is explored in a financial network comprising three …

This paper investigates systemic risk and contagion processes in the inter-bank network using network science methods …. The inter-bank network consisting 10 banks, similar to the real world inter-bank networks, is studied to understand the … contagion process in the network regarding changes in the network structure, as well as changes in the characteristics of …

We examine the effects on a financial network of clearing all contracts though a central node (CN) thereby transforming … the original network into a star-shaped one. The CN is capitalized with external equity and a guaranty fund. We introduce … a structural systemic risk measure that captures the shortfall of end users. We show that it is possible to …

system. The method also allows for what-if analyses to optimize the risk exposures, and to plan an emergency strategy in case …

insights from the literature on global games and network growth, we develop a simple model that sheds light on how network … the entire interbank network. The rate of system-wide bank failure is rendered endogenous, depending crucially on both the … a sharp transition from a dense network of credit relations to a sparse network where credit freezes readily occur are …

channels. We introduce direct contagion through a 2-layered multiplex network to account for the distinct dynamics resulting … analyze the determinants of systemic crisis and the resilience of different financial network configurations. Our first … experiment demonstrates the benefits of counterparty diversification as a way of reducing systemic risk. The second experiment …